Description

PGIM India Mutual Fund temporarily suspends new subscriptions and switch-ins for three international fund-of-funds schemes effective December 10, 2025 to comply with SEBI overseas investment limits.

Summary

PGIM India Asset Management has temporarily suspended new subscriptions, switch-ins, and fresh systematic investment registrations in three international fund-of-funds schemes effective after the cut-off timing of December 10, 2025. The suspension is necessitated to prevent breach of SEBI’s overall industry limits for overseas investments (US $7 billion) and overseas ETF limits (US $1 billion). The affected schemes are PGIM India Global Equity Opportunities Fund of Fund, PGIM India Emerging Markets Equity Fund of Fund, and PGIM India Global Select Real Estate Securities Fund of Fund.

Key Points

  • Three designated schemes affected: PGIM India Global Equity Opportunities Fund of Fund, PGIM India Emerging Markets Equity Fund of Fund, and PGIM India Global Select Real Estate Securities Fund of Fund
  • Lumpsum subscriptions and switch-ins to designated schemes not accepted post December 10, 2025 cut-off
  • Fresh Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs) into designated schemes suspended
  • Existing SIP/STP installments as of December 10, 2025 will continue
  • Switch-out, redemptions, and Systematic Withdrawal Plans remain unaffected
  • Intra-scheme and intra-plan switches (Regular to Direct, Growth to IDCW) have no impact
  • Restriction is temporary in nature
  • SEBI Master Circular SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024 specifies overseas investment limits

Regulatory Changes

SEBI has set industry-wide limits for overseas investments at US $7 billion and overseas ETF investments at US $1 billion as per clause 12.19 of SEBI Master Circular dated June 27, 2024. SEBI letter dated June 17, 2022 permits Mutual Funds to accept subscriptions and invest in overseas funds/securities only up to the headroom available without breaching the overseas investment limits as of end-of-day February 1, 2022 at Mutual Fund level.

Compliance Requirements

  • AMC will not process lumpsum subscriptions in designated schemes received post cut-off timing of December 10, 2025
  • No fresh SIP/STP registrations targeting designated schemes will be accepted
  • No new IDCW Transfer Plans with designated schemes as target will be accepted
  • Switch-out transactions or systematic/IDCW transfer out installments will not be accepted post cut-off timing if designated scheme is the target
  • Investors advised to update PAN, KYC, email, mobile number, and nominee details with AMC
  • Unit holders should link PAN with Aadhaar Number
  • Investors should check for unclaimed redemptions or IDCW payments

Important Dates

  • December 10, 2025: Cut-off timing after which new subscriptions, switch-ins, and fresh systematic registrations will not be accepted for the three designated schemes
  • February 1, 2022: Reference date for overseas investment limits at Mutual Fund level (as per SEBI letter dated June 17, 2022)

Impact Assessment

Investor Impact: High - Investors cannot make new lumpsum investments or start fresh SIPs in the three international fund-of-funds schemes. Those seeking exposure to global equities, emerging markets, or global real estate through PGIM India funds will need to explore alternative schemes or fund houses. However, existing SIP/STP installments will continue, and redemption/switch-out options remain available.

Market Impact: Medium - Reflects broader industry-level constraints on overseas investments by Indian mutual funds approaching SEBI-mandated limits. Similar restrictions may be imposed by other AMCs managing international funds.

Operational Impact: High - AMC must implement systems to reject specific transaction types while continuing to process existing systematic plans and redemptions. Distributors and investors need immediate communication to prevent failed transaction attempts.

Temporary Nature: The restriction is explicitly stated as temporary and will be lifted once headroom becomes available within SEBI’s overseas investment limits.

Impact Justification

Complete suspension of new investments in three international mutual fund schemes affects investor ability to invest in overseas markets through these funds, significant operational change with immediate effect